Your ultimate guide to renters insurance

Your ultimate guide to renters insurance for house rentals, apartments and roommate situations

No matter where you live or how much stuff you have, in 2023 you can find an affordable renters insurance policy to protect your belongings and future earnings. We were quoted rental insurance rates as low as $5 per month. 

Did you know you can be sued if someone hurts themselves in your apartment or if your dog bites them? Or if you cause water damage to your rental home? And, why would you want to replace your stolen $3,000 laptop outright if you didn’t have to? A good renters insurance policy will help you out when you need it.

Maybe you only want to get renters insurance because your new lease agreement requires it. Or maybe you moved into a risky (but cheap rent) neighborhood. Whatever the reason we did a bit of the legwork for you to help you find a customizable policy that suits your needs.

We reviewed 13 rental insurance companies to help you create your short list of 2023 best rent insurance companies to request quotes from.

Once you find a company you want to work with, you can usually obtain a new policy almost instantly.

What is renter’s insurance?

Renters insurance is insurance coverage for your things. While the property owner is required to have insurance for the building, that insurance doesn’t cover your belongings. Renter insurance covers things like your furniture, electronics, clothing, sports equipment, and kitchen items.

It also helps protect you from liability such as if someone is injured in your apartment or help pay for damages to your apartment if you accidentally start a fire or something else. In some cases, renters insurance may also help cover costs such as hotel rooms if you are temporarily not able to live in your home.

Across the US, 44 percent of Americans have renters insurance.

Renters insurance is cheaper than most types of insurance with average cost being around $10-$20 per month.

How to find the best renters insurance

Consider why you want renters insurance in the first place. Do you want it just because your landlord requires it or do you have expensive items you’d like to protect? If all of your possessions together add up to less than $10,000, consider a low-cost, basic plan. If you own a few (or a lot) of costly items, look for a customizable plan that will help you replace your property if needed. 

1. Compare Rates: How much does renter’s insurance cost?

When we requested renters insurance quotes from the reviewed companies, the average quoted rate was about $15 per month for about $10,000 worth of personal property. However, often if you lower coverages and take advantage of available discounts, you can likely lower the rate even further. We were able to lower Lemonade’s and State Farm’s rates to less than $10 per month.

Keep in mind that the service will run your credit and your quoted rate may be adjusted based on your credit rating after you submit your Social Security number.

2. Mobile Experience

Nowadays, if you can’t handle business on your phone, what’s the point? Or worse yet having to remember policy numbers to submit a claim. Good mobile apps are designed to help you review your policy, submit claims, change your coverages, and more. Many will even help you keep track of your personal belongings.

If you spend more time on your phone than a desktop, consider a service with a helpful mobile experience.

3. Customer Service

It’s important that your insurance company is there for you when you need them and how you want to interact with them.

• Do they offer 24/7 chat?
• Are local agents available if you want to visit an office? 
• How quickly do they respond to claims?
• Look at their FAQs and customer service offerings to see if they offer the kind of service you are looking for.

If you have two or three companies on your shortlist, call each one and reach out to them using the chat service—your experiences will likely clearly reveal which company you’ll want to work with.

4. Quick Coverage

Do you need renters insurance right now or before you move in? If your landlord is asking for proof of insurance immediately, consider a service that can provide proof of coverage to your landlord ASAP.

Note that renters insurance isn’t retroactive, meaning that it won’t cover something that already happened. So, if you overfilled your bathtub and damaged the floor last night, you are out of luck.

5. Discounts

Most insurance companies offer a variety of discounts. For example, you may be able to get a discounted rate if you also hold another policy with them such as car insurance. Other things that might help you get a lower rate include security alarms, not having submitted a claim in the past, or setting up automatic payments.

If you don’t see what discounts they offer, ask.

If you or your spouse is in the military or is a retired service person, you probably can acquire military-specific discounts. Ask if they offer military discounts or consider seeing if you are eligible for acquiring insurance through the USAA, which often offers rates as low as $10 per month to military members and their families.

Check out our article on rent insurance discounts for other ideas and tips on how to lower your monthly expense. 

Comparing renters insurance companies

Lemonade Renters insurance

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	Pros	Cons
Lemonade is a newcomer to the insurance scene, known for cheap insurance and a great online experience. However, they’re not available in every state, unfortunately.	• Cheap coverage for renters • Near-instant coverage when you’re in a hurry • Excess premiums donated to charity • Speedy payouts if you have to file a claim	• No in-person service from agents • Limited features for those who need complex plans • No auto insurance bundle options • Not available in all states

Allstate Renters insurance

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	Pros	Cons
Allstate offers a discount for multi-policy bundles. Policies are flexible to exclude items you don’t want covered to cut costs. And they’re popular for having excellent app experiences for claims and policy management.	• Top industry provider • Steep discounts • Plenty of local agents • High ratings for settling claims • Additional living expenses covered	• Limited coverage online • Mixed reviews from online • Requires bundling auto & rent insurance for the best rates • Doesn’t cover floods/earthquakes • Average customer satisfaction

Gabi renters insurance

	Pros	Cons
Gabi is an independent online insurance broker. Think of them as a platform that replaces the human insurance agent of the past. They don’t insure directly but reach out to multiple carriers to find you the best rate.  Their technology compares your current auto and renter insurance policies across top providers.	• Fast online quote  • Strong reviews: 4.7 on Facebook, 4.8 on Google.com • Consistently good at finding better deals (they claim $825 year) • No fees • Licensed in all 50 states	• Requires car insurance to be bundled with renter insurance in order for you to get a quote — so if you don’t have a car you’re out of luck • Quotes are not binding (meaning actual may vary) • They do not work with all insurance carriers • Customer chat is rated on the slow side

American Family Renters Insurance

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	Pros	Cons
American Family offers discounts including a decreased rate if your parents use American Family insurance. However, they are not available in all areas and when you request a quote you may notice you are referred to a different insurance agency.	• Items covered on-the-go • High personal liability protection • Higher than average medical payout	• Pets not covered • Loss-of-use paid as percent of property coverage • Sites errors when we attempted to request a quote

Amica Renters insurance

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	Pros	Cons
Amica reports rates as low as $4 per month and deductibles can be as low as $250. Policies are available in the lower 48 and we found their quotes simple to understand.	• High personal liability protection • Bundle discounts • Claim-free and loyalty discounts	• Replacement costs is extra • Smart devices and computer may be extra • Jewelry protection may cost extra

Assurant (Geico)

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	Pros	Cons
If you have Geico auto insurance, or are considering it, Assurant is the product they offer as Geico’s renters insurance, which includes a bundled discount. This insurance is also available without a Geico policy.	• Deductible as low as $100 • Covers roommate’s property • Replacement cost included	• Login is separate from your Geico account • Requires downpayment to start • $5 per month billing fee

Erie Renters insurance

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	Pros	Cons
Erie Insurance has been around for nearly 100 years and is available in 12 states and DC. Despite not having a mobile app, they generally report having a high customer experience rating.	• Bundle discounts available • Non-English language agents available • Protection while traveling	• You have to talk to an agent to get a quote • No mobile app • Not available in 38 states

Farmers Renters insurance

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	Pros	Cons
Farmers offers a discount for multi-policy bundles. You could combine renters insurance, auto insurance, and life insurance policies, for example.	• Top industry provider • Established company with local customer service • Online claims and quotes • Replacement cost coverage • Inexpensive basic coverage	• Below-average customer ratings • Processing fees • Limited online policy information • Standard coverage only • No flood/earthquake coverage included

Nationwide Renters insurance

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	Pros	Cons
Nationwide offers a discount for multi-policy bundles. You could combine renters insurance, auto insurance, and life insurance policies, for example.	• Helpful add-ons like “Brand New Belongings” • Top industry provider • Local agents and support available • Inflation protection • Stolen credit card coverage included	• Below average customer satisfaction • Not the lowest rates • Coverage explanations can feel misleading

Progressive Renters Insurance

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	Pros	Cons
Progressive is available in 41 states and offers a wide-variety of insurance options. You’ve likely seen at least one of their 100+ “Flo” commercials.	• Bundle discounts • Discounts for non-procrastinators • Single deductible for bundled insurance	• You have to submit SSN to get a quote • Dog breed restrictions • Per item limits

State Farm Renters Insurance

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	Pros	Cons
State Farm offers a discount for multi-policy bundles. You could combine a renters insurance, auto insurance, and life insurance policy, for example.	• Local service available • Optional mold coverage • No dog breed restrictions • Claims can be issued through the app	• Limited coverage online • Mixed reviews from online customers and businesses

Travelers Renters Insurance

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	Pros	Cons
This insurance is available in all areas and provides a wide variety of coverage options and bundled discounts. They also provide options for protecting luxury items.	• Available in all 50 states • Simple to understand quotes • Bundle discounts • Renter’s improvement coverage	• You can’t pick your own deductible • $30,000 is lowest coverage amount • Replacement costs is extra

Information needed to get a renters insurance quote

To save time, gather the information required to fill out the quote forms in advance. You likely already know most of the information. You’ll need:

• Your full name
• Address of the rental
• Type of building
• Security features of the building
• Email address
• Phone number
• Estimated value of your belongings
• A list of possible add-ons (such as floods, earthquakes or hurricanes)
• Do you need coverage for expensive belongings such as luxury items or musical instruments?

What does renters insurance cover?

Although add-ons can vary by rent insurance policy, most are based on the following types of coverage: 

Personal property loss

This is if your belongings are stolen.

The great thing about property protection is it covers your belongings wherever they are. For example, if your laptop gets stolen in a cafe, you’ll be covered (phew!).

The average two-room apartment holds possessions totaling $30,000 in value according to Allstate. Not sure how much your stuff is worth? Use the Insurance Information Institute’s home inventory tool to figure it out and then pick a plan with the right amount of personal property coverage.

Liability

If someone is injured in your home, you’ll make a liability claim. (If you do not have this type of coverage, you could be directly responsible for any costs the injured person incurred, or they could sue you.)

A standard renters insurance policy will cover you for up to $100,000 in legal liability coverage but you can go considerably higher for a few dollars more per month if you need it. 

Property damage

If your belongings get destroyed by fire or water damage, you’ll file a property damage claim. Also, look for loss-of-use coverage. Loss-of-use coverage helps pay for another apartment or hotel if you can’t stay in your place due to damage.

Most will offer you the option to add-on coverage for identity theft, earthquakes, flooding, luxury items, musical instruments or sports equipment.

You may also be asked if you want coverage for actual cash-value or the replacement cost.

• Cash-value pays out less since most items lose value quickly (so a laptop you bought last year might be worth half the price now).
• Replacement-cost coverage usually requires a higher monthly rate but will help you replace items at the “cost of new” price.

What does renters insurance NOT cover?

If you do not have a lot of stuff and are only getting renters insurance to satisfy your lease agreement, you may not need to worry about extra coverage. But if you own a few things that you care about or live in a high-risk weather area, you may want to think about what your insurance doesn’t cover. 

For example, basic renters insurance may not cover:

• Damage from earthquakes or flooding
• Expensive luxury items like jewelry, art or designer clothing
• Costly music equipment or band gear
• High-end sports gear
• A dog with a history of biting
• Your roommate’s stuff
• Electronics over a certain amount (some have a threshold of about $1500 per item)

To add coverage for items not covered in your general policy you may need to add additional insurance or even a policy per item such as a policy to cover your $10,000 piano or $5,000 mountain bike.

Renters insurance deductibles

Your deductible is how much you have to pay out-of-pocket when a claim is paid out. So, if you have a $500 deductible, you’ll pay for $500 worth of replacement or repair costs on your claims. You pay the same deductible whether you’re filing a claim to replace $500 worth of items or $5,000. 

The lower your deductible, the more affordable a claim is going to be, but it also makes your policy more expensive per month. A higher deductible, on the other hand, will result in a lower monthly rate, but you’ll pay more if you ever need to file a claim. Thankfully, deductibles usually apply to your personal property, not liability coverage.

Choosing the right renters insurance company doesn’t have to be confusing 

If you are having trouble deciding which company to go with and how much coverage you really need, just remember, the first step is to make an assessment of your valuables, your living situation, and your budget. 

Once you have this basic understanding of your renters insurance needs you can start narrowing companies down.  Decide which factors are important to you, such as quality customer service or low deductibles and you will find the company that is right for you in no time!